Development Bank will issue bond for ₮5 billion

The Cabinet Meeting was held on Saturday, September 15 2012. The meeting discussed several issues such as issuing the bond, establishment of Labour Research Institute and Employment Service Centre, decrease of Government agencies. The meeting supported the issuance of ₮5 billion by the Development Bank of Mongolia and the resolution will be proposed to the State Great Khural session.

The Cabinet Ministers are agreed on the use of fund for long term investment, intensification of economy, and supporting export, instead of payment for social welfare program and budget loss. For example, this fund will be used for financing national level projects such as railway network, autoroad building and energy projects, Tavan Tolgoi mine, “Sainshand” Industrial Complex. The Government oversees that this bond revenue will help decrease in the commercial loan interest, harness the inflation rate and reform the current financial system which is heavily and directly dependent from FDI.